This article is authored by Hetal Patel, Key Account Manager – Customer Solutions at smartTrade.
Over the years, the FX markets have undergone significant transformations, driven mainly by advances in technology and the relentless push for efficiency. The trading floor of today is vastly different from the loud and bustling environment of the past. The rise of electronic trading platforms from vendors like smartTrade has streamlined many processes, allowing for faster execution, reduced costs, and increased transparency. Digitisation, automation and algorithmic trading have become the norm, raising the question: are traders, particularly voice traders, still necessary for desk’s FX operations? And if they are, what tools do they need? Drawing on my extensive experience as a currency trader, I’ll consider the changing role of voice traders, some of the key challenges faced, and the tools that vendors like smartTrade have developed to support them, in enhancing autonomy and delivering better results.
Managing Complex and Large Orders
Large or complex orders could easily disrupt the market if executed incorrectly, voice traders’ step in to ensure that transactions are handled smoothly, efficiently, and with minimal market impact. In the past this would have been purely a voice operation but now traders can rely on the assistance of technology to support them.
A trading GUI like the smartTrade Aggregator enables traders to instantly view consolidated market liquidity across all venues, including banks, non-banks, and ECNs, in both full amount and sweepable streams. Any costs of execution whether explicit (exchange fees, post trade costs) or implicit (historic costs of previous rejections) can be automatically incorporated into the book building process to ensure full transparency of costs is shown to the voice trader.
By offering a full range of execution tools to meet every scenario as traders have the most flexibility to deploy whatever execution logic they see fit. For aggressive orders RFS or ESP on a full amount of sweeping streams are a standard requirement. Passive orders on exchanges and locally deployed algos or algo supplied by other banks come as standard.
The key challenge for a voice trader is to efficiently and quickly access such a vast range of tools. smartTrade addressed this challenge via a modern, responsive HTML5-based graphical user interface (GUI) that facilitates rapid order entry. Optimised for speed, with a clean and intuitive layout that minimises the number of steps needed to place an order. Hotkeys and Shortcuts allow for quick order entry and execution without navigating through multiple menus. Options to configure single-click or double-click trading, tailored to the user’s preference, enhancing speed and convenience. Quick Access Templates for Algorithms prefills trading criteria based on the trader’s preferences or past activity. This allows for rapid deployment of trading strategies with minimal input. Customizable algorithms allow traders to customise these templates to match their specific trading strategies, making it easier to execute complex trades quickly and efficiently. Customizable audible and visual notifications within the GUI alert users to important changes in Workflows (Any updates or changes in the trading process), pricing (Significant shifts or movements in pricing), and execution (Confirmation or status changes in order execution).
Only by focusing on making it quick and easy for a trader to access the full range of trading execution options does the platform really become a seamless extension of the trader. Meaning the voice traders experience and judgement can shine enabled not held back by technology.
Human Insight in Volatile Markets
Voice traders excel in novel market events that can never be fully anticipated and so are hard if not impossible to outsource to a machine. These situations require a high degree of discretion, judgement, and negotiation. Markets can be unpredictable, influenced by geopolitical events, economic data releases, and unforeseen shocks. In such situations, the human judgement and market intuition of voice traders become invaluable. The ability of a voice trader to read market sentiment and respond swiftly to changing conditions can provide a competitive edge.
But, it is very clear that the sheer volume of market and execution data that can be captured these days far exceeds anything that any human can possibly hope to digest. By integrating AI and machine learning (ML) tools, smartTrade analytics solves this challenge by enabling voice traders (and other users) to quickly view high level market analysis such as spreads, impact and depth as well as and trading patterns such as flow distribution, rejection analysis. This can then be taken a stage further by integrating AI and human expertise using smartTrade Copilot. This module provides a seamless blend of AI human synergy, providing tailored assistance to clients, sales teams, and especially voice traders. Here are some of the ways that our clients tell us technology is helping them to be more productive:
- Pattern Recognition & Anomaly Detection: Algorithms identify complex patterns and flag unusual activities that traditional methods might miss, such as trends, correlations, or potential market manipulation.
- Predictive Alerts: Real-time notifications provide insights on potential price movements or risks, allowing traders to act proactively.
- Automated Recommendations: The system suggests optimal trading actions like entry and exit points, helping traders make quicker, informed decisions.
- Risk Management: By analysing historical trade data, the system helps in assessing and managing trade-related risks more effectively.
- Personalized & Automated Analysis: Tailored alerts and rapid data processing enable more precise, strategy-aligned decisions at scale.
Building and Leveraging Relationships
Trust and relationships are still very much at the heart of trading within every successful front office. Voice traders cultivate deep connections with clients and other market participants, enabling them to secure better terms, access unique insights, and manage transactions that require a personal touch. Clearly this is an area that no AI bot however powerful can ever hope to replicate in our lifetime. But what are the tangible benefits of these personal relationships and insights?
- Collaboration Over Automation: While sales flows are increasingly automated, the human element of collaboration between sales teams and voice traders remains irreplaceable. Automation handles the mechanics, but the insights, context, and nuances that sales teams bring to the table are critical for informed decision-making.
- Shared Market Intelligence: Sales teams are often the first to understand client needs and market sentiments. Maintaining a strong relationship ensures that voice traders stay informed about these insights, which might not be captured fully through automated systems.
- Customization and Flexibility: Sales teams often understand the specific preferences and risk appetites of clients. By maintaining close communication with sales, voice traders can tailor trade executions more precisely to meet client needs, going beyond what automated systems might suggest.
- Problem-Solving Partnership: Strong relationships with sales teams enable quicker resolution of issues that arise from automated flows, such as adjusting strategies based on last-minute client feedback or market changes.
- Unified Client Strategy: When sales and trading work in harmony, clients receive a seamless experience. This unified approach builds trust, as clients see that their needs are being addressed through a cohesive strategy.
- Continuous Feedback Loop: Regular communication between sales and voice traders creates a feedback loop that enhances both teams’ performance. Sales can provide feedback on execution quality, while traders can share market trends that could influence sales strategies.
Conclusion
Ultimately, the success of voice traders lies in their ability to seamlessly integrate deep expertise with cutting-edge technology. While the days of shouting across desks and scrambling for phones may have passed, the core traits that define a successful voice trader—keen intuition, sharp negotiation skills, and a commanding presence—remain as essential as ever. In fact, modern trading technology amplifies these qualities rather than replacing them.
Here are my key conclusions:
- Advanced platforms now empower voice traders to execute strategies with greater precision and speed. Tools like real-time analytics, automated alerts, and machine learning models enhance a trader’s ability to identify opportunities and manage risks, while preserving the human touch that clients value.
- Despite these technological advancements, the traditional skills that define voice traders—relationship-building, quick decision-making, and deep market insight—remain central. Technology serves as a powerful enabler that enhances, rather than replaces, these capabilities.
- The dynamic personalities and driven mindset that voice traders bring are still critical assets. Technology doesn’t diminish this; instead, it highlights these traits by freeing traders to focus more on client interaction and strategic thinking, while automating routine tasks.
- The latest platforms are designed to complement, not overshadow, a trader’s instinct and experience. By providing instant access to data and analytics, these tools support quicker, more informed decisions, reinforcing the trader’s role as a key market player.
- The essence of voice trading—a blend of expertise, intuition, and personality—remains strong, even as technology reshapes the trading landscape. Successful voice traders embrace technology to enhance their skills, strengthen client relationships, and stay ahead in a fast-paced, evolving market. Ultimately, the human element remains the driving force behind successful outcomes, with technology serving as an indispensable ally.